The purchase price is US$750m and the transaction is subject to regulatory approvals. The acquisition is anticipated to close before the end of March 2013.

"This acquisition is a long-term investment that will create value for our customers and our company," said Jim Hannan , Georgia-Pacific chief executive officer and president.

"These high-quality assets with teams of talented employees are strategically located near large, growing regions of building products customers and will fit well into our existing operations. This will allow us to expand our geographic footprint and enhance our service to new and existing customers."

Temple-Inland manufactures a wide array of building products at 16 facilities in the US. These products include gypsum, lumber, fibreboard, MDF and particleboard.